Moved by
Lord Newby
59: After Clause 12, insert the following new Clause—
“Interpretation of terms used in offence
(1) This section has effect for the interpretation of section (Offence relating to decision that results in bank failure).
(2) “Bank” means a UK institution which has permission under Part 4A of FSMA 2000 to carry on the regulated activity of accepting deposits.
(3) But “bank” does not include—
(a) an insurer, or
(b) a credit union.
(4) In subsections (2) and (3)—
(a) “UK institution” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;
(b) “insurer” means an institution which is authorised under FSMA 2000 to carry on the regulated activity of effecting or carrying out contracts of insurance as principal;
(c) “credit union” means a credit union as defined by section 31 of the Credit Unions Act 1979 or a credit union as defined by Article 2(2) of the Credit Unions (Northern Ireland) Order 1985.
(5) Subsections (2) and (4)(b) are to be read in accordance with section 22 of FSMA 2000, taken with Schedule 2 to that Act and any order under that section.
(6) A person is a “senior manager” in relation to a bank if, under an arrangement entered into by the bank, or by a contractor of the bank, in relation to the carrying on by the bank of a regulated activity, the person performs a function that is designated as a senior management function—
(a) by the FCA under subsection (6B) of section 59 of FSMA 2000 (approval for particular arrangements), or
(b) by the PRA under subsection (6C) of that section.
(7) A bank (“B”) is to be regarded as failing where—
(a) B enters insolvency,
(b) any of the stabilisation options in Part 1 of the Banking Act 2009 is achieved in relation to B, or
(c) B is taken for the purposes of the Financial Services Compensation Scheme to be unable, or likely to be unable, to satisfy claims against B.
(8) In subsection (7)(a) “insolvency” includes—
(a) bankruptcy,
(b) liquidation,
(c) bank insolvency,
(d) administration,
(e) bank administration,
(f) receivership,
(g) a composition between B and B’s creditors, and
(h) a scheme of arrangement of B’s affairs.”